Blockchain in Insurance Market Analysis, Size, Share by 2031

The blockchain in insurance market size is expected to grow from US$ 498.5 million in 2023 to US$ 16780.2 million by 2031; it is anticipated to expand at a CAGR of 55.2% from 2024 to 2031.

The rising property values and the occurrence of natural disasters across the globe influence the Blockchain in Insurance market. Moreover, the expansion of businesses, both domestically and internationally, is a significant driver of the market. 

Blockchain in Insurance

Market Analysis

The adoption of advanced software platforms is propelling the growth of the blockchain in insurance market. In recent years, there has been a significant increase in the insurance industry's adoption of technology, which has contributed to its overall growth. Additionally, the utilization of augmented reality (AR) apps for tutorials and games can serve as effective marketing tools, providing valuable customer insights while reducing training costs through an enhanced learning experience. Furthermore, the rising occurrence of fraudulent insurance claims and the growing demand for secure online platforms further contribute to the expansion of the blockchain in insurance sector.

Blockchain in Insurance

Industry Overview

• Blockchain technology in the insurance industry functions as a decentralized and secure digital ledger that enables the storage of both static records and dynamic transaction data. It operates without the need for centralized coordination, utilizing a consensus-based mechanism to validate transactions.
• The primary objective of implementing blockchain in insurance is to mitigate fraud risks by digitally tracking and managing physical data in automated transactions. By leveraging blockchain, insurers, and customers can establish and execute smart contracts, facilitating transparent and efficient claims management processes.
• Blockchain in Insurance is essential for businesses as it helps protect their operations, assets, and financial well-being. It provides a safety net against unexpected events that could result in significant financial losses or even the closure of a business.

REGIONAL FRAMEWORK

 

Blockchain in Insurance

Market Drivers and Opportunities

Adoption of Technologically Advanced Software Platforms to Drive the Blockchain in Insurance

Market Growth

• The insurance industry has experienced a significant increase in the adoption of technology, leading to substantial growth. This trend is further fueled by the transformative impact of chatbots, which enhance customer interactions through personalized, human-like interfaces. Additionally, the utilization of AR apps-based tutorials and games serves as effective marketing tools, providing valuable customer insights while reducing training costs through an enhanced learning experience.
• Furthermore, the emergence of conversational AI, chatbots, and voicebots has revolutionized various aspects of the insurance sector. These technologies enable a conversational approach to online insurance purchasing, customer support, and premium quotations, resulting in streamlined operations and a seamless customer experience. Consequently, these factors are driving the growth of blockchain technology in the insurance industry.

Blockchain in Insurance

Market Report Segmentation Analysis

• Based on component, the blockchain in insurance market forecast is segmented into solutions and services.
• The solutions segment is expected to hold a substantial blockchain in insurance market share in 2023. This can be attributed to the transformative potential of blockchain solutions in simplifying and modernizing the insurance industry, breaking away from outdated practices with enhanced efficiency. Additionally, the increasing customer distrust in centralized financial services has led to high rates of underinsurance, driving a solid interest in blockchain solutions within the insurance sector.

Blockchain in Insurance

Market Share Analysis by Geography

The scope of the Blockchain in Insurance market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America has emerged as the leading region in terms of market size for blockchain in insurance in 2023. This can be attributed to the adoption of blockchain services by major retail banking companies in North America, aiming to enhance customer experience and prevent fraud. Additionally, the increasing utilization of blockchain technology for KYC/ID fraud prevention, risk scoring, and the rise in internet penetration rates are expected to further drive the growth of blockchain in the insurance industry.

Blockchain in Insurance

Market Report Scope

The "Blockchain in Insurance Market Analysis"was carried out based on component, enterprise size, application, and geography. Based on component, the market is segmented into solutions and services. Based on enterprise size, the market is segmented into large enterprises and SMEs. Based on application, the market is segmented into GRC management, claims management, identity management and fraud detection, payments, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Blockchain in Insurance Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the blockchain insurance market. A few recent key market developments are listed below: 

• In January 2021, Thai Reinsurance Public Company Limited (Thai Re), a leading technology-driven professional non-life reinsurer in Thailand, successfully launched "Insurer Network," a reinsurance smart contract production network using IBM blockchain technology on IBM Cloud. This innovative platform, available through ThaiRe Innovation Co., Ltd., a subsidiary of Thai Re, aims to bring transparency and speed to clients in Thailand's insurance industry. By leveraging blockchain technology, the Insurer Network enhances efficiency, reduces fraud risks, and provides a traceable, single version of truth documentation for reinsurance contracts. This initiative reflects Thai Re's commitment to staying ahead of the game and delivering value to its stakeholders in the evolving insurance landscape.

[Source: IBM Corporation, Company Website]

 

MARKET PLAYERS

Blockchain in

Insurance

Market Report Coverage & Deliverables

The market report on “Blockchain in Insurance Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, recent developments.
• Detailed company profiles.

Blockchain in Insurance Report Scope